timeoff-management-application: unable to submit new holiday request with carried over allowance/ Allowance adjustment

In this scenario the user has 4 days holiday remaining:

0.5 day of leave remaining 2.5 days Allowance carried over 1 day Allowance adjustment

They are trying to submit a request for 4 days but getting the following error message back: Error: Adding requested Holiday absence would exceed maximum allowed for such type by 3.5

Which implies that the system isn’t taking into account the carried over and manual adjustment?